Jul 07, 2023 ITOCHU Techno-Solutions Corporation
ITOCHU Techno-Solutions Corporation (headquartered in Minato-ku, Tokyo; Ichiro Tsuge, President & CEO;) announced that in June it began a demonstration experiment for the accurate measurement of farms' greenhouse gas (GHG) emissions and the visualization of data. The experiment is being conducted in Niigata City (mayor: Yaichi Nakahara) in collaboration with Niigata University (president: Tatsuo Ushiki). In addition, ITOCHU Techno-Solutions Corporation will mint non-fungible tokens (NFTs) representing the activity histories of producers contributing to GHG emissions reductions based on the recorded GHG emissions data, with a view toward future transactions using the NFTs as carbon credits.
As a measure for achieving carbon neutrality, attention has been drawn to carbon sequestration in recent years. It involves controlling carbon dioxide (CO2) emissions by sequestering it in soil, including in farmland through the manufacturing of soil using organic substances such as compost and green manure. It is expected that carbon credits for buying and selling GHG emissions reductions will increasingly become new revenue streams in agriculture through the reduction of GHG emissions. Carbon sequestration requires a mechanism for digitalizing and managing accurate measurement methods and reliable data.
In this demonstration experiment, we will verify the use of NFTs to digitally demonstrate how farms' GHG emissions are measured and recording producers activities to reduce GHG emissions to prepare for carbon credit transactions. We will also demonstrate an analysis method for predicting future GHG emissions which will lead to the estimation of economic impact.
ITOCHU Techno-Solutions Corporation and Niigata University collaborate in the measurement of the GHG emissions of a nearly 60-are (nearly 6,000 m2) piece of farmland in the test area of the Field Center for Sustainable Agriculture of Niigata University's Faculty of Agriculture. Soil is sampled in multiple spots to verify differences in GHG emissions associated with differences in soil components.
ITOCHU Techno-Solutions Corporation has undertaken the construction of a system for data management and visualization and, using blockchain technology that characteristically makes it difficult to falsify data, mints an NFT containing the activity history of the producers' contributions to the reduction of GHG emissions. An NFT marketplace will be constructed on MINKABU Web3-Wallet's NFT infrastructure provided to verify the feasibility of carbon credit data transactions.
Furthermore, we are using the infrastructure of a collaborative project with Tokyo University of Technology on the use of smartphone grids, with the goal of encouraging consumers in large areas to take part in the analysis and prediction of GHG emissions reductions and support producers who contributed to the reduction of GHG emissions. This is grid computing1 infrastructure that appropriates smartphones' idle time to conduct analyses. We give points to local consumers who participate in computing the analysis and prediction of GHG emissions reductions and encourage their involvement, thereby demonstrating the utility of the project in regional revitalization.
ITOCHU Techno-Solutions Corporation will also construct a reliable carbon credit transaction mechanism leveraging carbon sequestration and will contribute to the realization of the green transformation (GX) of society as a whole through market revitalization, with a view toward rolling it out as a solution within 2024.
Niigata University and ITOCHU Techno-Solutions Corporation seek to co-create new value that will lead to the promotion of agriculture and the revitalization of the local economy by discussing a system for returning benefits to producers and local residents using Niigata City’s DX Platform designed to enable business operators in different industries to work together and create new products and services.
Overview of the demonstration experiment
Objective: Accurate measurement of GHG emissions and the minting of NFTs containing the activity histories of producers who have contributed to the reduction of GHG emissions.
Period: June 2023 - March 2024
Place: A piece of farmland that is a test area on the premises of the Field Center for Sustainable Agriculture of Niigata University's Faculty of Agriculture.
Area: Approx. 60 ares (approx. 6,000 m2)
Details of the experiment:
1. Place a measurement device in the test area and measure GHG emissions 2. Mint NFTs containing the GHG reduction activity histories of producers to enable transactions on an NFT marketplace 3. Predict future GHG emissions reductions in large areas, the size of the NFT market and the economic effects of the transactions and discuss to return the profit obtained from the transactions to the producers.
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